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Large Deposit of stETH and ETH Enables a USDT-USDC Arbitrage Opportunity on Aave

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On March 11, according to Lookonchain data, czsamsun.eth deposited stETH and ETH with a value of $129 million in Aave and lent USDT to buy USDCs. At present, t…

Large Deposit of stETH and ETH Enables a USDT-USDC Arbitrage Opportunity on Aave

On March 11, according to Lookonchain data, czsamsun.eth deposited stETH and ETH with a value of $129 million in Aave and lent USDT to buy USDCs. At present, the address has lent 28577700 USDTs and bought 29961238 USDCs. If USDC resumes anchoring, the address will make a profit of about US $1.3 million.

Giant whale’s address czsamsun.eth deposited $129 million in assets with Aave, lent USDT and bought USDC

Analysis based on this information:


According to Lookonchain data, on March 11, czsamsun.eth made a substantial deposit of stETH and ETH with a value of $129 million on the decentralized finance protocol Aave. The funds were subsequently used to lend USDT in order to purchase USDCs, creating an arbitrage opportunity. As of the time of writing, the address had lent 28,577,700 USDTs, which had been used to purchase 29,961,238 USDCs.

The strategy employed by czsamsun.eth relies on USDC’s pegging to the US dollar through a process known as anchoring. When USDC is anchored and trades at a value of exactly 1 US dollar, an arbitrage opportunity arises, which can be leveraged to generate profits. The hope of czsamsun.eth is likely that USDC will soon resume anchoring, at which point the address would stand to profit approximately US $1.3 million.

The deposit of stETH and ETH on Aave underscores the growing trend of utilizing decentralized finance protocols to engage in financial activities. Staked ETH (stETH) is a tokenized form of ETH used for staking on the Ethereum 2.0 network. By depositing stETH and ETH on Aave, users can lend these assets to other users in exchange for an interest rate. In this case, the deposited stETH and ETH were used as collateral for the USDT loan.

Aave is a decentralized finance protocol that enables users to lend and borrow assets without the need for traditional financial intermediaries. The protocol utilizes smart contracts to ensure transparent and trustless transactions. Through Aave, users can deposit their assets into a liquidity pool, which can be accessed by borrowers. Borrowers must put up collateral to borrow funds from the pool, and they are charged interest on the loan. Lenders earn interest on the assets they deposit into the pool.

Overall, the deposit of stETH and ETH on Aave enabled czsamsun.eth to engage in an arbitrage opportunity issuing the USDT-USDC pair on the belief that USDC will soon resume its anchoring to the US dollar. This is a Prime example of how DeFi protocols can generate significant financial gains through the use of automated and trustless transactions.

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